Demystifying GST Input Tax Credit (ITC) Rules under Section 16(4)

Input Tax Credit (ITC) is the backbone of the GST structure, but claiming it requires absolute adherence to timelines. Under Section 16(4) of the CGST Act, there is a strict deadline beyond which you cannot claim credit for a given invoice.

Crucial Timelines

You must claim ITC for any invoice or debit note by November 30 of the following financial year, or the date of filing the relevant Annual GSTR-9 Return, whichever is earlier. Failing to meet this window results in permanent credit lapses, adding directly to your business cost.